Since Bitcoin (BTC) was launched in 2009, it has witnessed an unprecedented rise from a penny to a record high of $73,750 on March 14. The Bitcoin halving event in April, however, failed to jack up its price. Instead, the price of BTC fell below $60,000 and entered correction territory the following month.
BTC recently defied the bearish trend and bounced back above $63,000. BTC jumped 5.7% on July 15 to trade as high as $63.768, per Dow Jones Market Data. The price of BTC may still be well below its all-time high but has surged more than 50% this year. BTC’s price has soared 12.6% in the last seven days raising speculation of an imminent substantial upswing.
Bitcoin Price Chart – Percentage Change (7d)
Image Source: Zacks Investment Research
Is the Bitcoin Bull Run Here?
A plethora of factors are fueling the BTC surge. Donald Trump’s recent unsuccessful assassination attempt bolstered the likelihood of him winning the presidential election this year. Trump is professed to be more welcoming to the crypto industry than Biden. He has started to accept donations in crypto for the presidential election campaign.
Bitcoin miners, meanwhile, are undergoing significant strain, which could compel them to shut down their operations. This will lead to less selling pressure on the crypto market and pave the way for a potential recovery in BTC price.
Moreover, the absence of sustained downward pressure at the moment could enable the price of BTC to scale upward. This is because Bitcoin liquidations by the German government have concluded. On the other hand, for quite some time, Bitcoin whales have begun to acquire additional BTC, which could reduce the supply of BTC and lead to an uptick in price.
Lest we forget, both institutional and retail adoption of BTC will help the world’s numero uno cryptocurrency’s price to scale upward in the long run. Additionally, expectations of interest rate cuts as early as fall will lead to a weaker dollar and increase investors’ interest in alternative assets such as BTC (read more: Rise in Rate-Cut Bets May Prompt Stock Gains for GOLD, KGC, FNV).
3 Crypto Stocks on the Radar: COIN, SQ, NVDA
With the price of BTC set to move northward, things are looking hunky-dory for Coinbase Global, Inc. COIN, Block, Inc. SQ and NVIDIA Corporation NVDA, which can make the most of the flagship cryptocurrency’s bullish momentum.
Coinbase
Crypto-trading platform Coinbase, where several digital assets, including Bitcoin, are traded, has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s next-year earnings has increased by 15.4% over the past 60 days. Coinbase’s expected earnings growth rate for the current year is 1,740.5%. Its estimated revenue growth rate for the current year is 92%.
Block
Block is a digital payment company that generates revenues from products like Cash App. In this platform, Bitcoin is purchased and sold. Block currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Block’s current-year earnings has increased by 0.7% over the past 60 days. Block’s expected earnings growth rate for the current year is 72.8%. Its estimated revenue growth rate for the current year is 14.9%.
NVIDIA
Semiconductor behemoth NVIDIA is designing graphics processing units for mining cryptos such as Bitcoin. NVIDIA presently has a Zacks Rank #1.
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased by 11.2% over the past 60 days. NVIDIA’s expected earnings growth rate for the current year is 106.2%. Its estimated revenue growth rate for the current year is 93%.
Shares of Coinbase, Block and NVIDIA have gained 9.3%, 11.7% and 4%, respectively, month to date.
Image Source: Zacks Investment Research
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Block, Inc. (SQ) : Free Stock Analysis Report
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